@Mark_Hill - I found this thread of yours a 18 months later, and while your suggestion and work on trying to solve this was interesting, the Preferences setting didn’t work for me. So…
I have created a sequel to this issue and thread - “Why Can’t Steinberg FIX The Longstanding Midi Files Import Mess?”.
Included are screenshots of what happens when using Reaper - as you suggested this thread as an “import bridge”, so to speak, compared to direct-into-Cubase importing.
At slightly combative thread title, but most likely reflective of other users’ frustration with this particular issue.
If you have any further or updated solution/s, feel free to post over there is you so wish.
As suggested over there, I may just put in a feature request on this as delineated by a responder at that thread, but I have no idea whether feature requests actually get implemented.
Thanks.